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Market Analysis

Home » Featured » EURUSD – What’s Cooking For The Euro?

EURUSD – What’s Cooking For The Euro?

Posted by FXTimes in Featured - February 12th, 2016 2:23 pm GMT

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Key Points

  • Euro suffered losses today against the US dollar, and even positive releases in the Euro Area failed to help the shared currency.
  • EURUSD broke a support trend line on the hourly chart to open the doors for more losses in the near term.
  • Euro Area Gross Domestic Product released by the Eurostat managed to rise by 0.3% in Q4 2015, which was above the forecast of 0%.
  • German Gross Domestic Product released by the Statistisches Bundesamt Deutschland came in line with the market expectation and rose 0.3% in Q4 2015.

Technical Analysis

The EURUSD pair struggled throughout the day, and declined. There was a major resistance near the 1.1380 level where sellers stepped in and ignited a downside move. The pair moved below the 50 hourly simple moving average, and looks set for a close below the 100 hourly simple moving average.

EURUSD

Moreover, the pair just broke a support trend line on the hourly chart, and if there is a close below it, then a move towards the 200 hourly simple moving average is possible.

On the upside, the broken trend line may act as a resistance moving ahead.

Euro Area GDP

Today, the Euro Area saw a couple of important economic releases, including the Gross Domestic Product. It helps in evaluation of the total value of all goods and services produced by the Eurozone, and was reported by the Eurostat.

The forecasted was slated for the GDP to remain flat in Q4 2015, compared with the preceding quarter. However, the outcome came in above the market expectation and impressed investors. The Euro Area GDP rose 0.3% in Q4 2015.

Overall, the outcome was positive, but the economic releases in the US also impacted the US Dollar. The EURUSD pair moved down, and it looks set for more declines.

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